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Analysts are Downgrading These 10 Stocks

In this article, we will take a look at the 10 stocks recently downgraded by analysts. If you want to see some more companies on the list, go directly to Analysts are Downgrading These 5 Stocks.

U.S stocks continued their downward movement on Thursday following the latest rate hike from the Federal Reserve. All three major U.S. indices momentarily rose in the previous trading session after investors misinterpreted the Fed’s statement regarding future hikes.

However, the stocks reversed their gains later in the day after Fed Chair Jerome Powell cleared that it is very early to decide on any rate cut. In fact, Powell hinted the Fed would likely go for a higher rate hike than previously anticipated.

Meanwhile, the third-quarter earnings season continued, with Nutrien Ltd. (NYSE:NTR), Lincoln National Corporation (NYSE:LNC) and Cognizant Technology Solutions Corporation (NASDAQ:CTSH), among the notable stocks, posting their results.

If we look at their price actions, shares of Nutrien Ltd. (NYSE:NTR), Lincoln National Corporation (NYSE:LNC) and Cognizant Technology Solutions Corporation (NASDAQ:CTSH) dropped sharply this morning after their recent earnings.

Meanwhile, analysts also lowered their ratings for these stocks following their quarterly reports. Check out the remaining article if you want to see some more companies receiving ratings-cut from analysts.

Photo by AlphaTradeZone

10. Avista Corporation (NYSE:AVA)

Number of Hedge Fund Holders: 18

Mizuho lowered its ratings for Avista Corporation (NYSE:AVA) from “Buy” to “Neutral” on Wednesday, November 2. Analyst Anthony Crowdell thinks the energy company can’t do much to minimize the negative effects of inflation and interest rates in the coming years.

Crowdell added that interest rates could significantly impact the company’s profitability. He also trimmed his price target for Avista Corporation (NYSE:AVA) from $44 per share to $40 per share.

The downgrade came a day after Avista Corporation (NYSE:AVA) reduced its profit outlook for 2022 and 2023, citing elevated interest rates and operating costs. The company now expects to post consolidated earnings in the range of $1.88 – $2.08 per share for 2022 and between $2.27 – $2.47 per share for 2023.

9. Omnicell, Inc. (NASDAQ:OMCL)

 Number of Hedge Fund Holders: 19

Benchmark downgraded Omnicell, Inc. (NASDAQ:OMCL) from “Buy” to “Hold” on Thursday, November 3. The research firm was primarily moved by the company’s revised financial outlook for 2022.

Omnicell, Inc. (NASDAQ:OMCL) recently lowered its 2022 adjusted earnings outlook to a range of $2.73 – $2.83 per share, down from its earlier projection between $3.85 – $4.05 per share. Revenue for the same period is now expected to come between $1.28 – $1.29 billion versus its earlier guidance of $1.39 – $1.41 billion.

Shares of Omnicell, Inc. (NASDAQ:OMCL) lost more than 34 percent of their value on Wednesday, November 2, following the disappointing forecast. The stock is now down about 70 percent on a year-to-date basis.

8. Varonis Systems, Inc. (NASDAQ:VRNS)

Number of Hedge Fund Holders: 24

Varonis Systems, Inc. (NASDAQ:VRNS) recently plunged to a new 52-week low after missing financial expectations for the third quarter and trimming its sales outlook for the full year. The weak performance compelled many analysts to downgrade the software firm.

For instance, Craig-Hallum analyst Chad Bennett on Tuesday lowered his ratings for Varonis Systems, Inc. (NASDAQ:VRNS) from “Buy” to “Hold,” citing disappointing Q3 results and macro challenges. Bennett also cut his price target for the stock from $35 per share to $22 per share.

Earlier this week, Varonis Systems, Inc. (NASDAQ:VRNS) posted adjusted earnings of 5 cents per share and sales of $123.3 million for Q3. The numbers were marginally below expectations.

In addition, Varonis Systems, Inc. (NASDAQ:VRNS) projected annual recurring revenue in the range of $460 – $463 million for the full year, below analysts’ average estimate of $486.5 million. Moreover, it also reduced its full-year revenue guidance to a range of $470 – $473 million, from its previous projection between $485 – $490 million.

7. Qorvo, Inc. (NASDAQ:QRVO)

Number of Hedge Fund Holders: 30

Shares of Qorvo, Inc. (NASDAQ:QRVO) fell after the opening bell on Thursday, November 3. The drop came after JPMorgan turned bearish on the semiconductor stock following its second-quarter results.

JPMorgan analyst Harlan Sur lowered his ratings for Qorvo, Inc. (NASDAQ:QRVO) from “Overweight” to “Underweight” and reduced his price target from $125 per share to $90 per share.

The analyst pointed towards global macro challenges and excess inventories that could hurt the company’s profitability and sales growth. The downgrade came a day after Qorvo, Inc. (NASDAQ:QRVO) warned about weakness across its end markets.

Like Qorvo, Inc. (NASDAQ:QRVO), analysts also downgraded Nutrien Ltd. (NYSE:NTR), Lincoln National Corporation (NYSE:LNC) and Cognizant Technology Solutions Corporation (NASDAQ:CTSH) after their recent earnings.

6. Roku, Inc. (NASDAQ:ROKU)

Number of Hedge Fund Holders: 34

Guggenheim slashed its ratings for Roku, Inc. (NASDAQ:ROKU) from “Buy” to “Neutral” on Thursday, November 3, 2022. The research firm was primarily moved by the company’s lower-than-expected sales guidance for Q4.

Roku, Inc. (NASDAQ:ROKU) recently projected revenue of around $800 million for the current quarter, well below analysts’ average estimate of $895.5 million. Roku stock hit a new 52-week low of $44.59 on Thursday following the weak forecast.

The California-based streaming platform issued the guidance along with its Q3 results. For the third quarter, Roku, Inc. (NASDAQ:ROKU) reported a loss of 88 cents per share, narrower than the consensus forecast calling for a loss of $1.27 per share. Revenue for the quarter jumped 12 percent versus last year to $761 million, ahead of Wall Street estimates of $702.32 million.

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Disclosure: None. Analysts are Downgrading These 10 Stocks is originally published on Insider Monkey.

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At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

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  • 175 Teslas
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